Luna Gold Receives Approval for Short Form Base Shelf Prospectus to Raise up to US$200 Million

VANCOUVER, BC--(Marketwired - November 29, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Luna Gold Corp. (TSX: LGC) ("Luna Gold" or "the Company") announced today that it has received a receipt for its short form base shelf prospectus ("Prospectus"). As announced on November 3, 2016, the Prospectus will allow Luna Gold to offer up to US$200 million (or the equivalent thereof in Canadian dollars) of common shares, debt securities, subscription receipts, units, warrants and share purchase contracts from time to time, in each of the provinces of Canada other than Quebec, until the Prospectus expires on December 28, 2018.

A copy of the Prospectus may be obtained from the Corporate Secretary of the Company by directing a request to Luna Gold at Suite 730 - 800 West Pender Street, Vancouver, British Columbia, Canada, V6C 2V6, Attn: Corporate Secretary, or can be downloaded from SEDAR at www.sedar.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualifications under the securities laws of any such jurisdiction.

On behalf of the Company"Christian Milau"Christian Milau, Chief Executive Officer and Director

About Luna Gold Corp.

Luna Gold is engaged in the exploration and redevelopment of its past producing Aurizona Gold Mine in Brazil, which was placed on care and maintenance in 2015. A pre-feasibility study for the project completed in September 2016 outlined the design of an open-pit mine producing on average 150,000 ounces of gold annually for the first five years (see the "Pre-feasibility Study on Aurizona Mine Project, Maranhão, Brazil, NI 43-101 Technical Report" completed by Lycopodium Minerals Canada Ltd.). A feasibility study for the Aurizona project is underway, with the objective of pouring gold at the Aurizona Gold Mine in late 2018. Further information is available at www.lunagold.com or by email at ir@lunagold.com.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

Cautionary Note Regarding Forward-looking Statements

This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the word "will", "objective" and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements regarding the Company's Prospectus and offerings of securities thereunder, and the timing of the anticipated restart of production of the Aurizona Gold Mine. Although Luna Gold believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Luna Gold can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Luna Gold's periodic filings with Canadian securities regulators, and assumptions made with regard to the number and type of securities that Luna Gold may offer over the coming months, the amount of capital that Luna Gold may raise over the coming months, the anticipated results of the feasibility study for the Aurizona Project, Luna Gold's ability to restart production of the Aurizona Gold Mine, the timing of the anticipated restart of production, and Luna Gold's ability to achieve the gold production rates outlined in the pre-feasibility study. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.